Question: Chick-fil-A is preparing its aggregate plan for the first six months of 2023. The tables below contain the monthly demand forecast, working days per month,

Chick-fil-A is preparing its aggregate plan for the first six months of 2023. The tables below contain the monthly demand forecast, working days per month, and cost information.

Month Expected Demand Production Days
January 180 20
February 160 20
March 220 10
April 150 10
May 250 25
June 240 15

Inventory carrying cost 15 per unit per month
Subcontracting cost per unit 30 per unit
Regular working hours per day 8 hours
Labor-hours to produce a unit 2 hours/unit
Average pay rate 10 per hour
Overtime pay rate 15 per hour
Cost of increasing daily production rate (hiring and training) 150 per unit
Cost of decreasing daily production rate (layoffs) 200 per unit

The company is considering the following three strategies:

Plan 1: A constant workforce, daily production rate = average requirements Plan 2: Main a constant workforce at a necessary level to meet the lowest demand month, and to meet all demand above this level by subcontracting. Plan 3: Hire and layoff workers as needed to produce exact requirements.

Please answer the following questions: (hint: all numbers are integer, no decimal places are needed)

The average requirements (average daily demand) is _______ units/day.

For Plan 1: The monthly inventory change in February is _________ units. The monthly inventory change in May is _________units. The ending inventory in March is _________ units. The total inventory carrying cost is $_________. The total cost is $__________.

For Plan 2: Chick-fil-A needs to hire ________ workers to maintain the workforce. The production rate is ___________ units/day. The total in-house production is _______units. The total subcontracting cost is $________. The total cost is $________.

For plan 3: The total hiring cost is $________. The total layoff cost is $________. The total cost is $________.

Plan ________ is the best plan.

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